Assume that the interest rate on a federally insured deposit declines from 15 percent per annum to 10 percent. If an individual holding a U.S. Treasury bill worth $2,500 plans to sell it after this drop in interest rate, he would realize (approximately) a:

a. capital gain worth $99.
b. capital loss worth $100.
c. capital gain worth $100.
d. capital loss worth $99.


A

Economics

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